The Inflation Reduction Act created two significant HVAC tax credit programs. Here's what California homeowners need to know — and how ECO Heating & Cooling installs qualifying equipment.
Section 25C of the Inflation Reduction Act provides an annual federal income tax credit for qualifying HVAC installations. This credit runs through December 31, 2032, and resets every year — meaning you can claim it multiple times over the years for different improvements.
| Equipment | Credit Amount |
|---|---|
| Qualifying Heat Pump HVAC (air-source) | Up to $2,000 per year |
| High-Efficiency Central Air Conditioner | Up to $600 per year |
| High-Efficiency Gas Furnace | Up to $600 per year |
Section 25D covers geothermal heat pumps and solar systems. Unlike 25C, the 25D credit is 30% of total installed cost with no dollar cap — potentially worth tens of thousands on a geothermal installation.
Tax disclaimer: ECO Heating & Cooling installs qualifying equipment and provides documentation for your accountant. We are not tax advisors. Consult a CPA or tax professional about your specific eligibility before making purchasing decisions based on these credits.
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ECO installs qualifying equipment and provides all manufacturer documentation for your tax claim. Free assessment.